2007 Retrospective: Retail, Textile and Manufacturing Jobs Slump in 2007
Across the board, California’s apparel-related jobs dipped in 2007, according to the most recent data available from the California Employment Development Department (EDD).
Textile mills in the state lost 400 jobs, while apparel manufacturers shrunk their work force by 2,300. Retailers selling clothing, shoes and jewelry employed 4,300 fewer individuals in 2007 than in 2006. That’s a big change from last year, when textile jobs took a 3 percent dip but manufacturing and retail jobs held steady.
“There is a lot of uncertainty in the retail industry, and the manufacturing sector has been very cautious,” said Jack Kyser, chief economist at the Los Angeles County Economic Development Corp. “There was more outsourcing to Asia [in 2007] to keep manufacturing costs down. California is an expensive state in which to operate.”
In Los Angeles County, apparel manufacturing jobs slid from 59,400 in October 2006 to 57,000 in October of this year, representing a 4 percent drop. Textile-mill employment in the county dropped 2 percent. One bright spot is a 6 percent uptick in retail employment in Riverside and San Bernardino counties.
However, Kyser cautioned that in this soft retail climate, many of those new retail jobs could be lost in 2008. “The outlook for 2008 is very uncertain. There will be a wringing of the hands after the holidays when the final sales numbers come in,” he said, adding that retailers will probably see a thinning of the ranks as chains eliminate underperforming branches and independents succumb to competition.
“People are very nervous about the state of the financial markets. Bank loans [for small businesses] are very difficult to get,” he said. With funding becoming scarcer and consumers more skittish, 2008 will be a challenging year. “We’re on recession watch,” Kyser said.
Employment in Los Angeles County is expected to hold steady. And retail sales in San Diego are expected to remain strong as residents who were affected by the fires are in the market for everything from apparel to housewares. “They will certainly be shopping,” Kyser said. —Erin Barajas
